Lowe's Expands Professional Market with Two Major Acquisitions Totaling $10.13 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Acquisition Strategy: In 2025, Lowe's significantly bolstered its competitive position in the $250 billion professional market by acquiring Artisan Design Group for approximately $1.33 billion and Foundation Building Materials for $8.8 billion, aiming to provide comprehensive supply solutions tailored for professional contractors.
- Financial Performance: Despite a slight decline in net earnings due to acquisition costs, Lowe's reported approximately $1.6 billion in net earnings for Q3 2025, with online sales rising over 11% year-over-year, demonstrating resilience in a challenging economic environment.
- Dividend Growth: Lowe's maintains a dividend payout ratio of about 40%, with a remarkable 330% growth rate in dividends over the past decade, indicating a strong commitment to shareholder returns while ensuring ample capital for reinvestment and stock buybacks.
- Market Positioning: By 2024, Lowe's professional segment accounted for approximately 30% of total revenue, further solidifying its market position in the home improvement industry through enhanced omnichannel capabilities and a focus on professional contractors.
LOW
$244.49+Infinity%1D
Analyst Views on LOW
Wall Street analysts forecast LOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LOW is 279.09 USD with a low forecast of 250.00 USD and a high forecast of 320.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
16 Buy
7 Hold
0 Sell
Moderate Buy
Current: 243.000
Low
250.00
Averages
279.09
High
320.00
Current: 243.000
Low
250.00
Averages
279.09
High
320.00
About LOW
Lowe's Companies, Inc. is a home improvement company. The Company offers a complete line of products for construction, maintenance, repair, remodeling, and decorating. It offers home improvement products in various categories, including appliances, seasonal and outdoor living, lumber, lawn and garden, kitchens and bath, hardware, building materials, millwork, paint, rough plumbing, tools, electrical, flooring, and decor. It is focused on offering a wide selection of national brand-name merchandise complemented by its selection of private brands. Its services include installed sales and Lowe's Protection Plans and Repair Services. The Company offers installation services through independent contractors in many of its product categories. It offers extended protection plans for certain products within the appliances, kitchens and bath, decor, millwork, rough plumbing, electrical, seasonal and outdoor living, tools, and hardware categories. It operates over 1,700 home improvement stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
